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The first Bonus and Bonus Cap started trading today on the Spanish stock exchange through its Warrants and Certificates platform. They are two new products that are linked to the performance of an underlying asset.

The five products to be traded today are issued by BNP Paribas and offer exposure to the performance of BBVA, Banco Santander, Iberdrola, Repsol YPF and Telefónica stock.

The main defining feature of the Bonus and Bonus Cap is that they provide investors with additional return to that of the underlying asset as long as its value is below a certain level – called the barrier level – before it reaches maturity. If this level is reached before maturity, both types of products will still be traded on the market until reaching maturity, but their price would not incorporate this additional return or “bonus”. The main difference between both of them is that the potential return that can be achieved with the Bonus Cap is limited, while that of the Bonus is unlimited.